Published on 12/29/2021 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $26.57 million autocallable market-linked step-up notes on Russell 2000
By Marisa Wong
Los Angeles, Dec. 29 – Canadian Imperial Bank of Commerce priced $26.57 million of 0% autocallable market-linked step-up notes due Dec. 28, 2026 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
CIBC will issue 2,659,217 units, each with a principal amount of $10, or total principal amount of $26,592,170. The issuer is offering 500,000 units to individual investors at $9.95 per unit and the remainder to the public at par of $10 for total proceeds of $26,567,170.
The notes will be called at par plus a premium of 6.9% per year if the index closes at or above its initial level on any annual observation date.
If the index finishes above the step-up value, 125% of the initial value, the payout at maturity will be par plus the index return.
If the index finishes at or below the step-up value but at or above the initial value, the payout will be par plus the step-up payment of 25%.
If the index falls by up to 15%, the payout will be par. Otherwise, investors will lose 1% for every 1% index decline beyond 15%.
BofA Securities, Inc. is the underwriter.
| Issuer: | Canadian Imperial Bank of Commerce
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Russell 2000 index
|
| Principal amount: | $26,592,170 (2,659,217 units)
|
| Proceeds: | $26,567,170
|
| Maturity: | Dec. 28, 2026
|
| Coupon: | 0%
|
| Price: | $9.95 per unit for 500,000 units; par of $10 for remainder
|
| Payout at maturity: | If the index finishes above the step-up value, par plus the index return; if the index finishes at or below the step-up value but at or above the initial value, par plus 25%; full exposure to losses
|
| Call: | Automatically at par plus a premium of 6.9% per year if the index closes at or above its initial level on any annual observation date
|
| Initial value: | 2,221.903
|
| Step-up value: | 2,777.379, 125% of initial value
|
| Threshold value: | 1,888.618, 85% of initial value
|
| Pricing date: | Dec. 22
|
| Settlement date: | Jan. 3
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 1.5% for 500,000 units sold to individual investors; 2% for remainder sold to public
|
| Cusip: | 13607V374
|
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